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Globalization , International Tourism and the Lodging Sector

Globalization , International Tourism and the Lodging Sector. INTERNATIONAL TOURISM MANAGEMENT. Globalization.

emerson-heath
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Globalization , International Tourism and the Lodging Sector

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  1. Globalization, InternationalTourismandtheLodgingSector INTERNATIONAL TOURISM MANAGEMENT

  2. Globalization About 30 years ago international enterprises was a phenomenon but as globalization is a common term today, the rise in industry numbers, severe competitive in business life, application of a wide range of marketing techniques and modern technology, changed the business to transnational and global.

  3. With this concept all the countries, liberalized their foreign investment policies and aggressively courted foreign investments with generous fiscal incentives. Between 1983-1988 world trades volumes grew at a compounded rate of %5. Over the same period, global direct foreign investment increased more than 20% annually in real terms.

  4. We experience international transactions daily Imports and exports reach even remote areas Technology and e-biz promote trade Consumers and companies pull markets closer Globalization Involves Us All

  5. International Business

  6. Global Drivers Positive Negative Technology Open Markets Economic Integration Peace Corporate Strategy Global Focus Culture Market Barriers National Barriers War Corporate Strategy Local Focus 1-3

  7. GATT WTO Regional trade agreements Globalization Drivers I Remove barriers to trade and investment

  8. Globalization Drivers IITechnological Innovation E-mail and videoconferencing Internet, intranets, and extranets Transportation advancements Better coordination and control Improved communications and management More efficient, dependable shipping

  9. Examine company vulnerability (weakness) and create a disaster recovery plan Guard proprietary information and confidential communications Require ethical and lawful behavior from all employees and business partners Physical security Digital security Reputational risk Challenges to Business

  10. How They Stack Up Comparing revenue of the world's 10 most global firms to the gross domestic product of nations

  11. Global Business Environment

  12. Today, global corporations are controlling approximately half of the world’s assets. Some examples of the companies and trade marks may include; IKEA, Nestle, Coca-Cola Lever, General motors, Honda, Toyota, IBM, Microsoft and many other mega global companies . In our subject industry (Tourism), by the internationalization of Business ownership and management has had a major impact on the travel, tourism and hospitality industry. And these trends have resulted in intensified demand and competition for airline seats and hotel accomodations in various part of the world. (especially in USA)

  13. Globalization of Markets 1-4

  14. INTERNATIONAL HOTELS With the dissolution of borders, many economic and regional unities, tourism industry moved towards globalization Internationalization of business ownership and management had a major impact on the travel, tourism and hospitality industry in the last decade thus resulting in intensified demand and competition for hotel accommodations and restaurants in various part of the world.

  15. The tourism industry is one of the fastest growing industries of the world. Since 1950’s, due to internationalization of domestic chains like Hilton and introduction of jet planes to the industry, it has a steady growth globally. The figures are quite interesting thus WTO's Vision forecasts (UNWTO, 2007) indicates that international arrivals are expected to reach over 1.56 billion by the year 2020.

  16. Number of InternationalTourists (millions) andWorldTourismIncome (billion USD) &

  17. Kaynak: Kültür ve Turizm Bakanlığı, TÜİK.

  18. Kaynak: Kültür ve Turizm Bakanlığı.

  19. Kaynak: TÜİK Çıkış Yapan Yabancı Ziyaretçilerin Geliş Nedeni, 2001–2006

  20. World Bed Capacity (1997)

  21. Travel and Tourism ---World’s Largest Industry • In 2001 it is estimated to account for some: • $3.5 trillion of Economic Activity • 207 million jobs • In 2011 it is estimated to account for : • $7.0 trillion of Economic Activity • 260 million jobs Source: WTTC

  22. In 40 years…Turkey has reached... Years and Number of tourists • 1963 :198.000 2010 : 33.027.943 Years and Tourism revenues • 1963: 7 million $ 2010: 20,806 billion US$

  23. World’s total tourism investment level 802 billlion US $ (9.4 % of world total investment) • Turkey’s total tourism investment level 2.9 billlion US $ (7.5 % of world total investment) • Growth rate of world tourism sector 5.9 % • Growth rate of Turkey’s tourism sector 12.2 %

  24. Globalization, Tourism and the Lodging Sector International hotels “are not only foreign firms with direct investments in a particular host country, but are those firms having all major forms of contractual arrangements and enterprises in host countries”

  25. Reasons to go global: • ability to establish global marketing • purchase network • expertise to satisfy the demand • Reasons to encourage firms: • increase employment rate • increase national income • Problems: • cultural, political and social differences • cultural climate

  26. The Historical Aspects Of International Hotels Main pioneers in international hotel industry are; • Cesar Ritz, (Ritz Hotels) • E. M. Statler, (Statler Hotels) • Conrad Hilton, (Hilton Hotels) • Ernest Henderson (Sheraton Hotels)

  27. Before World War II, • American hotels have no investment abroad. • Reasons; • Great risk to choose the best location, • Financing complicated, • Currency fluctuations, • Restrictions, • Power of domestic hotels. • With the help of media, Americans wanted to go to places they saw.

  28. After World War II, • Roosevelt, Latin America, • Pan – Am and Inter – Continental, (Brazil) • Inter Continental and Grand Metropolitan (109 hotel) • Hilton,

  29. Developments in Continents Europe; - first from USA, - Marshall Plan, - first in main cities (London, Rome, Paris), - travel increase, European chains appeared, - Energy Crisis (1973), stopped, - European Economic Community, increased, - high labour cost, plan restrictions.

  30. North America; - only Americans, - 1980’s, foreign hotels . stability of economy, . low construction and operation costs. Middle East: - oil producing country’s wealth, - not an attractive place; . economic and politic instability, . complex problems . war in Kuwait, problems in Iran, Iraq, Israel.

  31. Asia – Pacific; - mass travel and extreme demand, - first American hotels, - Japanese and Asian brand hotels - attractive; . low costs . labour cheap

  32. Reasons To Become a Chain • stay as a local and weak hotel, • lack of technology, • cheaper equipments, • distribution of risks.

  33. Famous International Hotels American Chains; Hilton (Great Depression, 7 brands: Hilton, Conrad, Hampton Inn, Homewood Garden Inn, Doubletree and Embassy) (2.709 hotels: Hilton 717, Conrad 22, Hampton Inn 1.293, Homewood 132, Garden Inn 191, Doubletree 166, Embassy 188)

  34. Inter – Continental (part of Pan – Am airlines, restorate palace, old buildings.) (total 135 hotels: 26 North America, 20 South America, 18 Asia – Pacific, 31 Europe, 35 Africa ad Middle East.) Sheraton (first to; automate reservation system, develope toll free customer line, joint venture in Moscow)

  35. Holiday Inn (first that fully capitalized by franchising) Hyatt (attract customer from surroundings, first to emphasize on unique in – hotel dining facilities.) Choice Hotels (first to; use network, implement non – smoking rooms, introduce midpriced all – suites, established a three tiered hotel system – limited service budget hotel, full service midpriced hotel, full service luxury hotels)

  36. European Chains; Forte PLC (merged with Trust House, development strategy; continue developping properties, seek management contracts, pursue joint ventures, seek franchisees.) Club Mediterranée (sports assc.,change environment, first for singles then for couples, rent villages to companies) Accor (strong f&b operation, towards olders)

  37. Meridien (Air France route, expand French culture) (182 hotels; Europe 60, America 17, 23 Middle East, 62 Asia – Pacific 20 Africa, incopr. With Nikko’s 40 hotels) Grupo Sol (buildings impress Spanish architecture) (350 hotels; Africa 17, America 77, Asia 9, Caribbean 23, Europe 216)

  38. Indian Chains Low labour cost & training system. Taj Group (oldest hotel chain, 48 hotels) Oberoi (have 3 staff per room, 21 hotels)

  39. Asian – Pacific Chains cheap labour and land New Otani (Olympic games, largest and tallest hotel in Japan, 19 hotels (1993)) Nikko Hotels (Japan Airlines, own their hotels 18 hotels + 40 Meridien hotels)

  40. Regent International (first with Tokyo Inn, today with Rezidor SAS, 10 hotels; 5 Asia, 2 USA, 1 Europe) Mandarin Oriental Dusit Thani (15 hotels) African Chains Southern Sun Hotels (largest in Africa, 80 hotels.)

  41. Hilton Regent Int Inter-Cont Meridien 12 2.472 Nikko 26 2 1

  42. 20 23 35 4 Inter-Cont Hilton 17 4 Meridien Grupo Sol Taj Group Nikko

  43. Inter-Cont Meridien Hilton 60 210 Grupo Sol Nikko Regent Int 31 1 Taj Group 216 2 2

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